Fergus O'Dowd (Louth, Fine Gael) | Oireachtas source

The fines applicable to an offence of evasion or attempted evasion of excise duty on excisable products were increased significantly in the Finance Acts 2008 and 2010. For a summary conviction, the set fine was increased to €5,000. For a conviction on indictment, the maximum fine was increased tenfold to €126,970, or where the value of the goods concerned, including duty and tax payable thereon, is greater than €250,000, the fine can be three times the value of the goods. The Deputy's amendment seeks to separate the penalties and fines for offences regarding excise duty on tobacco from offences relating to other excisable products such as mineral oil and alcohol products. Second, the Deputy seeks to set new minimum fines and penalties. For a summary conviction, he suggests a minimum fine of €5,000 and for a conviction on indictment, he suggests a minimum fine of €130,000 or five times the value of the excisable product concerned, whichever is greater, or a minimum term of imprisonment of five years. Where the value of the excisable products is greater than €250,000, he suggests a minimum fine of five times the value of the excisable products or a minimum term of imprisonment of seven years.

With regard to the Deputy’s suggested minimum fine of €5,000 for a summary conviction, the current fine of €5,000 is already equal to the maximum applicable to the District Court. With regard to the Deputy’s suggested minimum fine of €130,000 for a conviction on indictment, the courts can apply a fine of up to €126,970. I am reluctant to introduce radical changes to the current penalties and fines regime without a thorough analysis of the issues involved. The amendment, as structured, would severely curtail the powers of discretion of the courts in all cases and I am concerned that it might have unintended consequences. For example, if trial judges believe defendants do not have the ability to pay the full fine, they would be forced to impose long custodial sentences and it is likely that these would be suspended in most cases. The result would be that no fines would be imposed or prison sentences served.

I am not convinced that penalties and fines for offences concerning excise duty on tobacco products should be set at different levels than offences concerning excise duty on mineral oil and alcohol products. On that basis, I cannot accept the amendment.

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